Res 342 Week Five Ind

Applying Time Series Methodologies Simulation

Isis C. Harvin

Res/342

February 01, 2012

Wendy Jacobs

Applying Time Series Methodologies Simulation

Blue Incorporation

To: Myra Reid, VP President

From: Isis C. Harvin

Date: January 31, 2012

Subject: Sales Forecast

As we should know, an accurate forecast and correct business choices needs be done in order to precede success in a company. This concept is true for any business as well as Blue Inc. An accurate forecast was conducted and managed for three consecutive weeks to make a decision about future sales forecast for Blue Inc.

Blue’s Incorporated was created to be the industry best for denim products. Other organizations compete to get to the end of the ladder of success, blue’s Inc. can stay many steps ahead of the competitors by revisiting and revising the advertising budget and competitors budget. Change in the advertising budget will give Blue Inc. to grow and expand the name. The goal of allowing Blue’s Inc. a time to shine is at hand (Applying ANOVA and Non-Parametric Tests, 2003).

1st Week

Week one, the current budget was $169 million. The market share for Blue’s Inc. is 6% or the $40 billion denim industry. The setting of the budget at this price assures Blue’s Inc. to have a bright future (Applying ANOVA and Non-Parametric Tests, 2003).

2nd Week

For the second week, the objective was to observe the changes in the market size and decide a sales forecast. The objective covered studying the average model. K-period is the average model and there was also a studying of the production level. The weight moving average was chosen along with the two k-periods. The weights were an estimate guess at approximately 0.8 for 11 years and 0.2 for 12 years and the production level was 40.00 million units. The decision was one that could have a negative effect on the future of Blue’s Incorporated (Applying ANOVA and Non-parametric Tests, 2003).

3rd Week

During the second week of research there were some...